Question

Your spent a total of $27.452, including tax, at the pet store. If the tax rate is 9.8%, what was the cost of the purchase, before tax? Enter your answers in the box.

Answer 1

So, the cost of the purchase before tax was approximately $25.00.

Explanation:

To find the cost of the purchase before tax, you can use the formula:

Cost before tax = Total cost / (1 + Tax rate)

In this case, the total cost is $27.452, and the tax rate is 9.8% (0.098 as a decimal).

Cost before tax = $27.452 / (1 + 0.098)

Cost before tax = $27.452 / 1.098

Now, divide the total cost by 1.098 to find the cost before tax:

Cost before tax ≈ $25.00 (rounded to the nearest cent)

So, the cost of the purchase before tax was approximately $25.00.